Sub-prime lender profits propped by demand for credit cards

Sub-prime lender Provident Financial has reported a 17% hike in half-year profits as demand for credit cards from customers turned away by high street banks continued apace.

The Bradford-based business said its Vanquis banking arm - which also recently started taking savings deposits - was the star performer behind the rise, with profits at the division up by 67% to £29.4 million in the first six months of the year. Shares leapt 11% after the rise in group profits to £72.9 million, up from £62.3 million a year earlier.